Sylvamo Generates Strong Operating Cash Flow, Returns $127 Million in Cash to Shareowners in 2023
Financial Highlights – 2023 Full Year
-
Net income from continuing operations of
$253 million ($5.93 per diluted share) -
Adjusted operating earnings1 of
$278 million ($6.51 per diluted share) -
Adjusted EBITDA2 of
$607 million (16% margin) -
Cash provided by operating activities from continuing operations of
$504 million -
Free cash flow3 of
$294 million -
Paid regular and special dividends totaling
$57 million -
Repurchased 1,574,133 shares of our common stock for approximately
$70 million , resulting in 41.2 million shares outstanding as ofDec. 31 -
Ended the year with net debt of
$730 million ($950 million of gross debt and$220 million cash on hand)
Financial Highlights - Fourth Quarter vs. Third Quarter
-
Net sales of
$964 million vs.$897 million (7.5% increase) -
Net income from continuing operations of
$49 million ($1.16 per diluted share) vs.$58 million ($1.37 per diluted share) -
Adjusted operating earnings1 of
$49 million ($1.16 per diluted share) vs.$72 million ($1.70 per diluted share) -
Adjusted EBITDA2 of
$117 million (12% margin) vs.$158 million (18% margin) -
Cash provided by operating activities from continuing operations of
$167 million vs.$197 million -
Free cash flow3 of
$104 million vs.$155 million
Commercial and Operational Highlights – Fourth Quarter vs. Third Quarter
-
Price and mix decreased by
$25 million due primarily to prior paper price decreases as well as unfavorable mix inLatin America andNorth America -
Volume increased by
$20 million due to seasonally stronger sales volume inLatin America and positive trends inEurope andNorth America -
Operations and other costs increased by
$12 million due to seasonally higher costs inEurope andNorth America , including$5 million for an unexpected reliability issue with a third-party energy provider at our Saillat,France , mill and unfavorable foreign exchange variances. These costs were partially offset by lower economic downtime costs versus the prior quarter. -
Planned maintenance outage expenses increased by
$25 million due to planned outages in all regions -
Input costs improved by
$1 million , driven primarily by favorable chemical costs, more than offsetting seasonally high energy costs
First Quarter Outlook
-
Adjusted EBITDA of
$105 million to$125 million -
Compared to the fourth quarter:
-
Price and mix are expected to decrease slightly by
$5 million to$10 million , primarily reflecting a seasonal, geographic mix shift inLatin America -
Volume is projected to decrease by
$10 million to$15 million , with seasonally weaker industry demand inLatin America -
Operations and other costs are expected to improve by
$20 million to$25 million due primarily to lower economic downtime -
Input and transportation costs are projected to increase by
$5 million to$10 million due to increased transportation costs, mainly inNorth America and higher fiber costs inLatin America -
Total planned maintenance outage expenses are expected to decrease by
$3 million
-
Price and mix are expected to decrease slightly by
Management Summary from Chairman and Chief Executive Officer Jean-Michel Ribiéras
In 2023, we earned
We remain focused on allocating capital to drive long-term shareowner value. Last year, we invested
By the end of 2023, we exhausted our initial
In the second half of last year, we reduced overhead expenses by
Our
In addition, we are investing
Our forestlands have significantly increased in value. In December, a third party appraisal valued these assets at 4.8 billion reais (approximately
1 Adjusted Operating Earnings (non-GAAP) are net income (loss) (GAAP) excluding discontinued operations, net of tax and net special items. Management uses this measure to focus on ongoing operations and believes it is useful to investors because it enables them to perform meaningful comparisons of past and present combined operating results. The Company believes that using this information, along with net income (loss), provides for a more complete analysis of the results of operations. Net income (loss) is the most directly comparable GAAP measure. For more information regarding net special items, see the information under the heading Effects of Net Special Items and the Consolidated Statement of Operations and related notes included later in this release. |
|
2 Adjusted EBITDA (non-GAAP) is net income (loss) (GAAP) excluding discontinued operations, net of tax, plus the sum of income taxes, net interest expense (income), depreciation, amortization and cost of timber harvested, transition service agreement expense, stock-based compensation, and, when applicable for the periods reported, net special items. Management uses this measure in managing the operating performance of our business and believes that Adjusted EBITDA and Adjusted EBITDA Margin provide investors and analysts meaningful insights into our operating performance and Adjusted EBITDA is a relevant metric for the third-party debt. The Company believes that using this information, along with net income (loss), provides for a more complete analysis of the results of its operations. Net income (loss) is the most directly comparable GAAP measure. For more information regarding net special items, see the information under the heading Effects of Net Special Items and the Consolidated Statement of Operations and related notes included later in this release. |
|
3 Free Cash Flow is a non-GAAP measure and the most directly comparable GAAP measure is cash provided by operating activities from continuing operations. Management utilizes this measure in connection with managing our business and believes that Free Cash Flow is useful to investors as a liquidity measure because it measures the amount of cash generated that is available, after reinvesting in the business, to maintain a strong balance sheet and service debt, and return cash to shareowners. It should not be inferred that the entire Free Cash Flow amount is available for discretionary expenditures. Free Cash Flow also enables investors to perform meaningful comparisons between past and present periods. |
Select Financial Measures |
||||||||
(In millions) |
Fourth Quarter 2023 |
|
Third Quarter 2023 |
|
Fourth Quarter 2022 |
|||
|
$ |
964 |
|
$ |
897 |
|
$ |
927 |
Net Income from Continuing Operations |
|
49 |
|
|
58 |
|
|
88 |
Net Income |
|
49 |
|
|
58 |
|
|
94 |
Business Segment Operating Profit |
|
77 |
|
|
116 |
|
|
133 |
Adjusted Operating Earnings |
|
49 |
|
|
72 |
|
|
87 |
Adjusted EBITDA |
|
117 |
|
|
158 |
|
|
170 |
Cash Provided By Operating Activities From Continuing Operations |
|
167 |
|
|
197 |
|
|
142 |
Free Cash Flow |
|
104 |
|
|
155 |
|
|
84 |
Segment Information
Business Segment Results |
|||||||||||
(In millions) |
Fourth Quarter 2023 |
|
Third Quarter 2023 |
|
Fourth Quarter 2022 |
||||||
|
|
|
|
|
|
||||||
|
$ |
197 |
|
|
$ |
184 |
|
|
$ |
119 |
|
|
|
288 |
|
|
|
246 |
|
|
|
289 |
|
|
|
496 |
|
|
|
476 |
|
|
|
527 |
|
Inter-segment Sales |
|
(17 |
) |
|
|
(9 |
) |
|
|
(8 |
) |
|
$ |
964 |
|
|
$ |
897 |
|
|
$ |
927 |
|
Operating Profit by Business Segment |
|
|
|
|
|
||||||
|
$ |
(23 |
) |
|
$ |
(14 |
) |
|
$ |
12 |
|
|
|
48 |
|
|
|
55 |
|
|
|
56 |
|
|
|
52 |
|
|
|
75 |
|
|
|
65 |
|
Business Segment Operating Profit |
$ |
77 |
|
|
$ |
116 |
|
|
$ |
133 |
|
Operating profits in the fourth quarter of 2023:
Effective Tax Rate
The reported effective tax rate for continuing operations for the fourth quarter of 2023 was 27%, compared to 36% for the third quarter of 2023. The higher rate for the third quarter was due to a change in estimated Annual Effective Tax Rate (AETR) to reduce the expected benefit of foreign tax attributes and also a mix of earnings in our regions.
Excluding net special items, the effective tax rate for the fourth quarter of 2023 was 25%, compared with 33% for the third quarter of 2023.
The effective tax rate excluding net special items is a non-GAAP financial measure and is calculated by adjusting the income tax provision from continuing operations and rate to exclude the tax effect at the applicable statutory rate of net special items. Management believes that this presentation provides useful information to investors by providing a more meaningful comparison of the income tax rate between past and present periods.
Effects of Net Special Items
Net special items related to continuing operations in the fourth quarter of 2023 amounted to a net after-tax charge of
Earnings Webcast
The company will host an audio webcast at
Parties who wish to participate should call +1-877-336-4440 (
Replays are available at investors.sylvamo.com for one year and by phone for 90 days, beginning at approximately
About
Forward-Looking Statements
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, including the information under the headings "First Quarter Outlook" and "Management Summary from Chairman and Chief Executive Officer Jean-Michel Ribiéras." Any or all forward-looking statements may turn out to be incorrect, and our actual actions and results could differ materially from what they express or imply, because they involve known and unknown risks, uncertainties and other factors, many of which are beyond our control. These risks, uncertainties, and other factors include those disclosed in the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended
Consolidated Statement of Operations Preliminary and Unaudited (In millions, except per share amounts) |
||||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
2023 |
|
Twelve Months Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
||
|
$ |
964 |
|
$ |
927 |
|
$ |
897 |
|
$ |
3,721 |
|
$ |
3,628 |
|
|
Costs and Expenses |
|
|
|
|
|
|
|
|
|
|
||||||
Cost of products sold |
|
762 |
(a) |
|
654 |
(h) |
|
665 |
(e) |
|
2,809 |
(a) |
|
2,619 |
|
(h) |
Selling and administrative expenses |
|
87 |
(b) |
|
97 |
(i) |
|
89 |
(f) |
|
343 |
(b) |
|
325 |
|
(i) |
Depreciation, amortization and cost of timber harvested |
|
38 |
|
|
32 |
|
|
36 |
|
|
143 |
|
|
125 |
|
|
Taxes other than payroll and income taxes |
|
4 |
|
|
5 |
|
|
7 |
|
|
23 |
|
|
23 |
|
|
Interest expense (income), net |
|
6 |
(c) |
|
17 |
(j) |
|
9 |
|
|
34 |
(c) |
|
69 |
|
(j) |
Income From Continuing Operations Before Income Taxes |
|
67 |
|
|
122 |
|
|
91 |
|
|
369 |
|
|
467 |
|
|
Income tax provision |
|
18 |
|
|
34 |
|
|
33 |
(g) |
|
116 |
(d) |
|
131 |
|
(l) |
Net Income From Continuing Operations |
|
49 |
|
|
88 |
|
|
58 |
|
|
253 |
|
|
336 |
|
|
Discontinued operations, net of tax |
|
— |
|
|
6 |
(k) |
|
— |
|
|
— |
|
|
(218 |
) |
(m) |
Net Income (Loss) |
$ |
49 |
|
$ |
94 |
|
$ |
58 |
|
$ |
253 |
|
$ |
118 |
|
|
Basic Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
||||||
Income from continuing operations |
$ |
1.18 |
|
$ |
2.02 |
|
$ |
1.39 |
|
$ |
6.02 |
|
$ |
7.65 |
|
|
Discontinued operations, net of taxes |
|
— |
|
|
0.14 |
|
|
— |
|
|
— |
|
|
(4.97 |
) |
|
Net earnings (loss) |
$ |
1.18 |
|
$ |
2.16 |
|
$ |
1.39 |
|
$ |
6.02 |
|
$ |
2.68 |
|
|
Diluted Earnings Per Share |
|
|
|
|
|
|
|
|
|
|
||||||
Income from continuing operations |
$ |
1.16 |
|
$ |
1.99 |
|
$ |
1.37 |
|
$ |
5.93 |
|
$ |
7.57 |
|
|
Discontinued operations, net of taxes |
|
— |
|
|
0.14 |
|
|
— |
|
|
— |
|
|
(4.91 |
) |
|
Net earnings (loss) |
$ |
1.16 |
|
$ |
2.13 |
|
$ |
1.37 |
|
$ |
5.93 |
|
$ |
2.66 |
|
|
Average Shares of Common Stock Outstanding - Diluted |
|
42 |
|
|
44 |
|
|
42 |
|
|
42 |
|
|
44 |
|
|
The accompanying notes are an integral part of this consolidated statement of operations. |
|
Three Months and Twelve Months Ended |
|
|
|
(a) |
Includes a pre-tax gain of |
|
|
(b) |
Includes a pre-tax loss of |
|
|
(c) |
Includes a pretax gain of |
|
|
(d) |
Includes a |
Three Months Ended |
|
|
|
(e) |
Includes pre-tax loss of |
|
|
(f) |
Includes a pre-tax loss of |
|
|
(g) |
Includes a |
|
|
Three Months and Twelve Months Ended |
|
|
|
(h) |
Includes a pre-tax gain of |
|
|
(i) |
Includes a pre-tax loss of |
|
|
(j) |
Includes a pre-tax loss of |
|
|
(k) |
Includes a pre-tax income of |
|
|
(l) |
Includes a |
|
|
(m) |
Includes a pre-tax charge of |
Reconciliation of Net Income to Adjusted Operating Earnings Preliminary and Unaudited (In millions, except per share amounts) |
||||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
2023 |
|
Twelve Months Ended
|
|||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
|
2023 |
|
|
2022 |
|
||
Net Income (Loss) |
$ |
49 |
|
$ |
94 |
|
|
$ |
58 |
|
$ |
253 |
|
$ |
118 |
|
Less: Discontinued operations, net of tax |
|
— |
|
|
6 |
|
|
|
— |
|
|
— |
|
|
(218 |
) |
Net income From Continuing Operations |
|
49 |
|
|
88 |
|
|
|
58 |
|
|
253 |
|
|
336 |
|
Add back: Net special items expense (income) |
|
— |
|
|
(1 |
) |
|
|
14 |
|
|
25 |
|
|
12 |
|
Adjusted Operating Earnings |
$ |
49 |
|
$ |
87 |
|
|
$ |
72 |
|
$ |
278 |
|
$ |
348 |
|
|
Three Months Ended
|
|
Three Months Ended
2023 |
|
Twelve Months Ended
|
|||||||||||
|
|
2023 |
|
|
2022 |
|
|
|
|
2023 |
|
|
2022 |
|
||
Diluted Earnings (Loss) Per Common Share as Reported |
$ |
1.16 |
|
$ |
2.13 |
|
|
$ |
1.37 |
|
$ |
5.93 |
|
$ |
2.66 |
|
Less: Discontinued operations, net of tax |
|
— |
|
|
0.14 |
|
|
|
— |
|
|
— |
|
|
(4.91 |
) |
Continuing Operations |
|
1.16 |
|
|
1.99 |
|
|
|
1.37 |
|
|
5.93 |
|
|
7.57 |
|
Add back: Net special items expense (income) |
|
— |
|
|
(0.02 |
) |
|
|
0.33 |
|
|
0.58 |
|
|
0.27 |
|
Adjusted Operating Earnings Per Share |
$ |
1.16 |
|
$ |
1.97 |
|
|
$ |
1.70 |
|
$ |
6.51 |
|
$ |
7.84 |
|
Sales and Earnings by Business Segment Preliminary and Unaudited (In millions) |
||||||||||||||||||||
|
||||||||||||||||||||
|
||||||||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
2023 |
|
Twelve Months Ended
|
|
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|
|||
|
$ |
197 |
|
|
$ |
119 |
|
|
$ |
184 |
|
|
$ |
821 |
|
|
$ |
501 |
|
|
|
|
288 |
|
|
|
289 |
|
|
|
246 |
|
|
|
1,006 |
|
|
|
1,023 |
|
|
|
|
496 |
|
|
|
527 |
|
|
|
476 |
|
|
|
1,951 |
|
|
|
2,173 |
|
|
Inter-segment Sales |
|
(17 |
) |
|
|
(8 |
) |
|
|
(9 |
) |
|
|
(57 |
) |
|
|
(69 |
) |
|
|
$ |
964 |
|
|
$ |
927 |
|
|
$ |
897 |
|
|
$ |
3,721 |
|
|
$ |
3,628 |
|
|
Operating Profit by Business Segment |
|||||||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
2023 |
|
Twelve Months Ended
|
|
|||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|||
|
$ |
(23 |
) |
|
$ |
12 |
|
|
$ |
(14 |
) |
|
$ |
(25 |
) |
|
$ |
50 |
|
|
|
48 |
|
|
|
56 |
|
|
|
55 |
|
|
|
197 |
|
|
|
212 |
|
|
|
52 |
|
|
|
65 |
|
|
|
75 |
|
|
|
269 |
|
|
|
291 |
|
Business Segment Operating Profit |
$ |
77 |
|
|
$ |
133 |
|
|
$ |
116 |
|
|
$ |
441 |
|
|
$ |
553 |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Income from Continuing Operations Before Income Taxes |
$ |
67 |
|
|
$ |
122 |
|
|
$ |
91 |
|
|
$ |
369 |
|
|
$ |
467 |
|
Interest expense (income), net |
|
6 |
|
(a) |
|
17 |
|
(d) |
|
9 |
|
|
|
34 |
|
(a) |
|
69 |
(d) |
Net special items expense (income) |
|
4 |
|
(b) |
|
(6 |
) |
(e) |
|
16 |
|
(c) |
|
38 |
|
(b) |
|
17 |
(e) |
Business Segment Operating Profit (f) |
$ |
77 |
|
|
$ |
133 |
|
|
$ |
116 |
|
|
$ |
441 |
|
|
$ |
553 |
|
Three Months and Twelve Months Ended |
|
|
|
(a) |
Includes a pretax gain of |
|
|
(b) |
Includes a pre-tax gain of |
|
|
Three Months Ended |
|
|
|
(c) |
Includes pre-tax loss of |
Three Months and Twelve Months Ended |
|
|
|
(d) |
Includes a pre-tax loss of |
|
|
(e) |
Includes a pre-tax gain of |
|
|
(f) |
As set forth in the chart above, business segment operating profit is defined as income from continuing operations before income taxes, but excluding net interest expense (income) and net special items. Business segment operating profit is a measure reported to our management for purposes of making decisions about allocating resources to our business segments and assessing the performance of our business segments. |
Reconciliation of Net Income to Adjusted EBITDA and Adjusted EBITDA Margin Preliminary and Unaudited (In millions) |
|||||||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
2023 |
|
Twelve Months Ended
|
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|||
Net Income (Loss) |
$ |
49 |
|
|
$ |
94 |
|
|
$ |
58 |
|
|
$ |
253 |
|
|
$ |
118 |
|
Less: Discontinued operations, net of tax |
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
— |
|
|
|
(218 |
) |
Net Income From Continuing Operations |
|
49 |
|
|
|
88 |
|
|
|
58 |
|
|
|
253 |
|
|
|
336 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Income tax provision |
|
18 |
|
|
|
34 |
|
|
|
33 |
|
|
|
116 |
|
|
|
131 |
|
Interest expense (income), net |
|
6 |
|
|
|
17 |
|
|
|
9 |
|
|
|
34 |
|
|
|
69 |
|
Depreciation, amortization and cost of timber harvested |
|
38 |
|
|
|
32 |
|
|
|
36 |
|
|
|
143 |
|
|
|
125 |
|
Stock-based compensation |
|
2 |
|
|
|
4 |
|
|
|
6 |
|
|
|
23 |
|
|
|
20 |
|
Transition service agreement expense |
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
— |
|
|
|
23 |
|
Net special items expense (income) |
|
4 |
|
|
|
(6 |
) |
|
|
16 |
|
|
|
38 |
|
|
|
17 |
|
Adjusted EBITDA |
$ |
117 |
|
|
$ |
170 |
|
|
$ |
158 |
|
|
$ |
607 |
|
|
$ |
721 |
|
|
$ |
964 |
|
|
$ |
927 |
|
|
$ |
897 |
|
|
$ |
3,721 |
|
|
$ |
3,628 |
|
Adjusted EBITDA Margin |
|
12.1 |
% |
|
|
18.3 |
% |
|
|
17.6 |
% |
|
|
16.3 |
% |
|
|
19.9 |
% |
Adjusted EBITDA and Adjusted EBITDA Margin by Business Segment |
|||||||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
2023 |
|
Twelve Months Ended
|
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
(16 |
) |
|
$ |
16 |
|
|
$ |
(5 |
) |
|
$ |
7 |
|
|
$ |
70 |
|
|
|
67 |
|
|
|
72 |
|
|
|
74 |
|
|
|
271 |
|
|
|
281 |
|
|
|
66 |
|
|
|
82 |
|
|
|
89 |
|
|
|
329 |
|
|
|
370 |
|
Total Business Segment Adjusted EBITDA |
$ |
117 |
|
|
$ |
170 |
|
|
$ |
158 |
|
|
$ |
607 |
|
|
$ |
721 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
$ |
197 |
|
|
$ |
119 |
|
|
$ |
184 |
|
|
$ |
821 |
|
|
$ |
501 |
|
|
|
288 |
|
|
|
289 |
|
|
|
246 |
|
|
|
1,006 |
|
|
|
1,023 |
|
|
|
496 |
|
|
|
527 |
|
|
|
476 |
|
|
|
1,951 |
|
|
|
2,173 |
|
Total Business Segment |
$ |
981 |
|
|
$ |
935 |
|
|
$ |
906 |
|
|
$ |
3,778 |
|
|
$ |
3,697 |
|
Adjusted EBITDA Margin |
|
|
|
|
|
|
|
|
|
||||||||||
|
|
(8 |
)% |
|
|
13 |
% |
|
|
(3 |
)% |
|
|
1 |
% |
|
|
14 |
% |
|
|
23 |
% |
|
|
25 |
% |
|
|
30 |
% |
|
|
27 |
% |
|
|
27 |
% |
|
|
13 |
% |
|
|
16 |
% |
|
|
19 |
% |
|
|
17 |
% |
|
|
17 |
% |
Consolidated Balance Sheet Preliminary and Unaudited (In millions) |
|||||||
|
|
|
|
||||
Assets |
|
|
|
||||
Current Assets |
|
|
|
||||
Cash and temporary investments |
$ |
220 |
|
|
$ |
360 |
|
Restricted cash |
|
60 |
|
|
|
— |
|
Accounts and notes receivable, net |
|
428 |
|
|
|
450 |
|
Contract assets |
|
27 |
|
|
|
30 |
|
Inventories |
|
404 |
|
|
|
364 |
|
Other current assets |
|
54 |
|
|
|
39 |
|
Total Current Assets |
|
1,193 |
|
|
|
1,243 |
|
Plants, Properties and Equipment, Net |
|
1,002 |
|
|
|
817 |
|
Forestlands |
|
364 |
|
|
|
322 |
|
|
|
139 |
|
|
|
128 |
|
Right of Use Assets |
|
58 |
|
|
|
35 |
|
Deferred Charges and Other Assets |
|
116 |
|
|
|
165 |
|
Total Assets |
$ |
2,872 |
|
|
$ |
2,710 |
|
Liabilities and Equity |
|
|
|
||||
Current Liabilities |
|
|
|
||||
Accounts payable |
$ |
421 |
|
|
$ |
453 |
|
Notes payable and current maturities of long-term debt |
|
28 |
|
|
|
29 |
|
Accrued payroll and benefits |
|
63 |
|
|
|
81 |
|
Other current liabilities |
|
183 |
|
|
|
165 |
|
Total Current Liabilities |
|
695 |
|
|
|
728 |
|
Long-Term Debt |
|
931 |
|
|
|
1,003 |
|
Deferred Income Taxes |
|
189 |
|
|
|
183 |
|
Other Liabilities |
|
156 |
|
|
|
118 |
|
Equity |
|
|
|
||||
Common stock, |
|
45 |
|
|
|
44 |
|
|
|
48 |
|
|
|
25 |
|
Retained Earnings |
|
2,222 |
|
|
|
2,029 |
|
Accumulated Other Comprehensive Loss |
|
(1,256 |
) |
|
|
(1,338 |
) |
|
|
1,059 |
|
|
|
760 |
|
Less: Common stock held in treasury, at cost, 3.3 shares and 1.6 shares at |
|
(158 |
) |
|
|
(82 |
) |
Total Equity |
|
901 |
|
|
|
678 |
|
Total Liabilities and Equity |
$ |
2,872 |
|
|
$ |
2,710 |
|
Consolidated Statement of Cash Flows Preliminary and Unaudited (In millions) |
|||||||
|
Twelve Months Ended
|
||||||
|
|
2023 |
|
|
|
2022 |
|
Operating Activities |
|
|
|
||||
Net income from continuing operations |
$ |
253 |
|
|
$ |
336 |
|
Depreciation, amortization, and cost of timber harvested |
|
143 |
|
|
|
125 |
|
Deferred income tax provision (benefit), net |
|
— |
|
|
|
(7 |
) |
Stock-based compensation |
|
23 |
|
|
|
20 |
|
Changes in operating assets and liabilities and other |
|
|
|
||||
Accounts and notes receivable |
|
104 |
|
|
|
(45 |
) |
Inventories |
|
6 |
|
|
|
(99 |
) |
Accounts payable and accrued liabilities |
|
(73 |
) |
|
|
48 |
|
Other |
|
48 |
|
|
|
40 |
|
Cash Provided By Operating Activities from Continuing Operations |
|
504 |
|
|
|
418 |
|
Cash Provided By Operating Activities from Discontinued Operations, net |
|
— |
|
|
|
20 |
|
Cash Provided By Operating Activities |
|
504 |
|
|
|
438 |
|
Investment Activities |
|
|
|
||||
Invested in capital projects |
|
(210 |
) |
|
|
(149 |
) |
Cash proceeds on disposal of business, net of cash divested |
|
— |
|
|
|
324 |
|
Acquisition of business |
|
(167 |
) |
|
|
— |
|
Other |
|
— |
|
|
|
10 |
|
Cash Provided By (Used for) Investment Activities from Continuing Operations |
|
(377 |
) |
|
|
185 |
|
Cash Provided By (Used for) Investment Activities from Discontinued Operations, net |
|
— |
|
|
|
(5 |
) |
Cash Provided By (Used for) Investment Activities |
|
(377 |
) |
|
|
180 |
|
Financing Activities |
|
|
|
||||
Dividends paid |
|
(57 |
) |
|
|
(10 |
) |
Issuance of debt |
|
446 |
|
|
|
75 |
|
Reduction of debt |
|
(526 |
) |
|
|
(450 |
) |
Repurchases of common stock |
|
(70 |
) |
|
|
(80 |
) |
Other |
|
(12 |
) |
|
|
(4 |
) |
Cash Provided By (Used for) Financing Activities from Continuing Operations |
|
(219 |
) |
|
|
(469 |
) |
Cash Provided By (Used for) Financing Activities from Discontinued Operations, net |
|
— |
|
|
|
(1 |
) |
Cash Provided By (Used for) Financing Activities |
|
(219 |
) |
|
|
(470 |
) |
Effect of Exchange Rate Changes on Cash |
|
12 |
|
|
|
32 |
|
Change in Cash Included in Assets Held for Sale |
|
— |
|
|
|
(21 |
) |
Change in Cash, Temporary Investments and Restricted Cash |
|
(80 |
) |
|
|
201 |
|
Cash, Temporary Investments and Restricted Cash |
|
|
|
||||
Beginning of the period |
|
360 |
|
|
|
159 |
|
End of the period |
$ |
280 |
|
|
$ |
360 |
|
Reconciliation of Cash Provided by Operations to Free Cash Flow Preliminary and Unaudited (In millions) |
|||||||||||||||||||
|
Three Months Ended
|
|
Three Months Ended
2023 |
|
Twelve Months Ended
|
||||||||||||||
|
|
2023 |
|
|
|
2022 |
|
|
|
|
2023 |
|
|
|
2022 |
|
|||
Cash Provided By Operating Activities From Continuing Operations |
$ |
167 |
|
|
$ |
142 |
|
|
$ |
197 |
|
|
$ |
504 |
|
|
$ |
418 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
||||||||||
Cash invested in capital projects |
|
(63 |
) |
|
|
(58 |
) |
|
|
(42 |
) |
|
|
(210 |
) |
|
|
(149 |
) |
Free Cash Flow |
$ |
104 |
|
|
$ |
84 |
|
|
$ |
155 |
|
|
$ |
294 |
|
|
$ |
269 |
|
Reconciliation of Net Income From Continuing Operations to Adjusted EBITDA - First Quarter 2024 Outlook Estimates (In millions) |
|
|
Three Months Ended
2024 |
|
|
Net Income From Continuing Operations |
|
Adjustments: |
|
Income tax provision |
15 - 21 |
Interest expense (income), net |
10 |
Depreciation, amortization and cost of timber harvested |
38 |
Stock-based compensation |
6 |
Net special items expense |
3 |
Adjusted EBITDA |
|
The non-GAAP financial measures presented in this release have limitations as analytical tools and should not be considered in isolation or as a substitute for an analysis of our results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the Company’s presentation of non-GAAP measures in this release may not be comparable to similarly titled measures disclosed by other companies, including companies in the same industry as
Management believes certain non-
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